The fear of missing out (FOMO) exists. Nowadays, it feels like everyone is doing something crypto-related, and you just don’t know which way to go. Plus, you want your piece of that fat crypto pie. We got you!
It’s okay to move with the times, but even better to proceed with direction. And that’s what you’ll get in this article, as we’ll discuss two things you could do with your crypto: Gaming and investing.
We’ll examine each concept, the differences and similarities between both options and round up with the pros and cons of crypto gaming and investments.
Understanding Crypto Gaming
Crypto gaming combines cryptocurrencies and gaming, as you’d expect. It allows players to acquire digital assets like NFTs, XPs, virtual currencies, and other in-game items by gaming and performing other activities.
The concept of earning via a video game has long existed with traditional video games. However, these assets were only on the game and were digital assets owned by the game developers.
Crypto gaming brings this concept to reality using blockchain technology. Now, players can earn money from playing games through P2E game models, where they make digital tokens during the game and convert them to cash or other cryptocurrencies on the game or other marketplaces.
Furthermore, crypto game developers and owners can earn money by selling and advertising in-game tokens like weapons, avatars, or virtual real estate.
Understanding Crypto Investments
Cryptocurrency investments are crypto assets acquired at specific periods to generate income or value appreciation for resale or get higher purchasing power in the future. The anticipation of value appreciation stems from the fact that most cryptocurrencies are scarce as they are available in limited units and are stores of value and anonymous means of payment. As a result, many crypto enthusiasts invest in a crypto project like Bitcoin by buying them at low prices and selling them at high prices.
However, buying low and selling high isn’t the only way to invest in crypto. Other cryptocurrency investment routes include crypto-related index funds and exchange-traded funds (ETFs).
Similarities Between Crypto Gaming and Investments
Both crypto gaming and crypto investments share an upside in that they can make you money. Here are some ways in which both approaches are similar:
Profit and Loss Potential
Both crypto gaming and investments have colossal profit or loss potentials, depending on what you do with them. With crypto gaming, players can gain in-game tokens and virtual currencies that have real-world value when exchanged on crypto and NFT marketplaces. Investing in crypto, on the other hand, can reel in substantial financial rewards when the cryptocurrency appreciates.
Conversely, you can equally incur losses with both options.
Your in-game token and virtual currencies might lose value if the coin or game becomes less popular and the demand and perceived value decrease. Likewise, the highly volatile nature of cryptocurrencies sometimes results in value reduction.
Blockchain Technology
Blockchain technology serves as the basis of crypto gaming and crypto investments. Whichever route you choose, you’ll be dealing with a decentralized public ledger that maintains a transparent and secure record of all transactions.
As such, crypto gaming and investments share a similarity in lacking intermediaries for all transactions made regarding digital assets, be it actual cryptocurrencies or virtual currencies earned on a crypto game.
Community Support
The value of cryptocurrencies and gaming tokens are both closely linked to public opinion and demand. As a result, cryptocurrency and crypto game developers often facilitate the development of active communities on social media platforms like X and Telegram. Therefore, you’ll get community support to guide you every step if you invest your crypto in both endeavors.
Differences Between Gaming and Investing With Your Crypto
Despite these similarities, playing games with crypto and investing in cryptocurrencies are two distinct endeavors. They differ in the following regard:
Scope
The bottom line for both might be earning. However, the scope for reaching this bottom line is different.
Crypto gaming creates digital assets with value in virtual worlds using blockchain technology. Crypto investments instead focus on buying, holding, and selling crypto coins like Bitcoin and Ethereum for financial gains.
Property
While a crypto gamer tries to get game-specific virtual currencies or in-game tokens that could be exchanged for cryptocurrencies or fiat money, a crypto investor is out to get the cryptocurrencies themselves.
For instance, the reward in a crypto game might be a weapon NFT with a high value in the NFT marketplace. On the other hand, the prize in a crypto investment will be cryptocurrencies like Bitcoin, Dogecoin, or Ethereum.
Economy
Like the gaming environment, the crypto gaming economy is virtual and player-driven. Only gamers create the forces of demand and supply for their virtual currencies based on the hottest games.
In contrast, the world financial markets represent the cryptocurrency economy. Tactics such as long-term HODLing (holding on for dear life), dollar cost averaging, and scalping, typically applied in the forex markets, are also used in the crypto market.
Pros of Crypto Investments: Why Should You Invest Your Crypto?
The following are some of the advantages of engaging in crypto investments. They include but are not limited to the following:
Return Potential
Crypto investment is one of the many ways you can make money with your mobile phone. Everybody knows the story of the guy who paid 10,000 BTC for two Papa John’s pizzas and what 10,000 BTC is currently worth. This appreciation only points to the massive potential for returns that cryptocurrencies have.
Simply, you should invest your crypto if getting multiple folds of your initial investment sounds like something you might be interested in, but only if you’re not afraid that its value could also plummet.
Global Access
You can access your crypto investments anywhere worldwide with solid internet connectivity and an internet-enabled device. It implies you can make tight investment calls on a whim without dealing with bottlenecks like high transaction costs, border restrictions, and political censorship.
Control
Cryptocurrency puts you in control of things compared to traditional investments and crypto gaming. With crypto gaming, the developers still maintain a particular grip on how much you can make. Crypto investments, on the other hand, give you the autonomy to make decisions however you choose.
Cons of Crypto Investments
The following are some reasons why you shouldn’t invest in cryptocurrency.
Technicalities
You should step back from crypto investments if you need help to grasp technical concepts and processes because crypto investing is often associated with those. Storing and transferring coins can be tricky, and some people make mistakes that result in losing their digital assets.
Volatility
Crypto trading and investing have been likened to gambling in recent times. These comparisons stem from the highly volatile nature of cryptocurrency prices. Investors often have to deal with high highs and low lows.
Dynamic Government Regulations
The regulations surrounding cryptocurrencies are constantly evolving. These uncertainties stem from its decentralized nature, which makes it difficult for the government to establish proper regulatory guidelines.
As a prospective investor, this might be worth considering because you never know what changes might be introduced tomorrow. So it is advisable to stay updated with recent events and announcements to know what to do.
Pros of Crypto Gaming: Why Should You Game with Your Crypto?
If the technicalities, volatility, and regulatory uncertainties of crypto investing are too much for you to handle, consider crypto gaming. You’ll find the following things advantageous about the endeavor.
Having Fun While Earning
Gamers no longer have to feel bad for “wasting precious time playing video games” because crypto gaming helps them earn with it. Game developers also get an additional income stream by selling in-game items to gamers and royalties on other transactions.
Asset Utilization
Gaming trophies and items can have wide applications in today’s virtual and NFT world. The upside is that gamers can enjoy interoperability as their assets on one game can be used elsewhere or sold for fiat money.
Cons of Crypto Gaming
Crypto gaming has the following disadvantages:
Volatility
Like trading, investing your resources in crypto gaming could prove disadvantageous due to the unpredictable value of in-game assets and tokens. So, gamers risk losing money when they invest in winning or purchasing these tokens.
Lack of Regulation
Compared to the cryptocurrency space, the regulations in the crypto gaming scene are little. Game developers and player communities determine asset prices and other operational standards. This keeps the door open for potential scams and frauds.
Limited Acceptance
Yes, crypto gaming is currently buzzing. But that’s all that it is presently: a buzz.
Compared to established traditional gaming platforms, the adoption of crypto games still needs to be improved, and this might be something to worry about if you wish to stake your financial resources in the industry.
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